US ethylene margins fall 7.6% on drop in spot prices

22 October 2012 17:14  [Source: ICIS news]

US ethylene margins fall 7.6%HOUSTON (ICIS)--A steep fall in US spot ethylene prices pushed ethylene margins for the third week of October down by 7.6%, the ICIS margin report showed on Monday.

Ethylene margins were assessed at 41.83 cents/lb ($922/tonne, €710/tonne), using ethane as a feedstock, down from 45.29 cents/lb the previous week.

Softer demand, especially from the polymer market, has been the main factor driving spot ethylene prices and margins lower.

US ethylene spot prices fell by 1.25-4.25 cents/lb for an average fall of 5.0% week on week.

Ethylene margins were also pushed down by higher feedstock costs for ethane. Ethane prices gained 4.6% during the week.

Ethylene co-product credits fell by 2.1% during the week, to 4.19 cents/lb from 4.28 cents/lb.

October spot ethylene was offered higher on Monday at 54.75 cents/lb, but no bids were heard.

($1 = €0.77)

By: John Dietrich

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